This week, Defense Secretary Ash Carter previewed the GFY2017 defense budget request in anticipation of the full release next week. According to Carter, the $583 billion budget takes a “long view” approach, as the U.S. prepares for challenges decades down the road. The planning of the budget was driven by several key factors including the rise of Russia and China, the threat of North Korea, Iran’s influence in the Gulf Coast, and the current fight against the Islamic State.
Aerospace & Defense Update Boeing released its financial guidance for 2016, which included plans to deliver fewer commercial jets this year than last. The guidance sent shares down 8.9% to end Wednesday trading at $116.58, its lowest close since October 2013. However, Boeing achieved first flight of its 737 MAX on Friday, hoping to stay […]
The U.S. State Department approved the sale of more than 33,000 F-16 Block-52 weapons and munitions to Iraq for roughly $2 billion. According to the Defense Security Cooperation Agency, Iraq will use the weapons systems and logistic services to maintain its F-16 fleet functionality and support pilot training.
The U.S. Air Force selected Orbital ATK and SpaceX to develop prototypes of rocket engines as a part of the persistent push to end reliance on the Russian RD-180 boosters for military space launch. Orbital ATK secured a $47.0 million contract to develop prototypes of its GEM 63XL strap-on solid rocket motor, the common booster segment solid rocket motor, and an extendable nozzle for Blue Origin’s BE-3U engine.
Lockheed Martin secured a $5.3 billion contract to deliver 78 C-130J Super Hercules aircraft to the U.S. armed forces from 2016 through 2020. The C-130J aircraft, one of the longest-running military aircraft programs, is a versatile tactical airlifter used in many different types of missions for the U.S. Air Force, Marine Corps, and Coast Guards.
The Israeli Defense Ministry announced that Israeli firms received ~$770 million worth of work from Lockheed Martin in conjunction with a cooperation package associated with Israel’s F-35I stealth fighter purchase. Elbit Systems, producer of the F-35 helmet mounted display system, and state owned Israel Aerospace Industries, producer of wing sets, were the two largest recipients of the industrial cooperation package.
SpaceX, led by Elon Musk, completed a historic feat by launching an updated version of its Falcon 9 rocket and then landing a large portion of the rocket back on earth. This unprecedented accomplishment comes just six months after a high-profile launch explosion of its Falcon 9 rocket.
The U.S. has brought a World Trade Organization (“WTO”) case against China for their alleged discriminatory taxes on smaller aircraft. U.S. officials are claiming that China has imposed a 17% value-added tax (“VAT”) on imported aircraft, hurting smaller U.S. made planes and part makers and creating a preferential tax policy for its domestic aerospace industry.